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Of course this all started when the Russians got ticked after the orange revolution, but I think this time the real problem is that the Ukraine economy has fallen off a cliff and they probably really haven't got the foreign reserves.

given that the ukraine also has a political leadership crisis right now (again) they aren't even in a position to sort it out by making nice cos there is nobody who can commit the ukraine to a decision that won't be counter-manded within a week.

I imagine it's not beyond imagination that the Rusians are exploiting this situation for amusement purposes, but I really don't see how this is benefiting Gazprom in the long term even if others see short term benefits.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Fri Jan 2nd, 2009 at 05:50:06 PM EST
[ Parent ]
This all started in 1991. We are have only begun to notice since 2004 (the gas companies like GDF, Ruhrgas and others noticed long ago; indeed, they opened u offices in Kieve after the first crisis in 1992 - I spent 6 months in GDF's Kiev office in 1994 and followed that story then in excruciating detail).

I hope to have a post on this tomorrow.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Jan 2nd, 2009 at 07:23:03 PM EST
[ Parent ]

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